This is a detailed checklist of procedures of the audit work to be done drawn by the auditor before the audit.
It shows what is to be done by whom, when, where, and how it will be done. It is a set of procedures that govern how an evaluation, review or audit will be done. It is a list of procedures, guidelines and instructions to be followed in performing an audit in order to obtain sufficient and appropriate evidence. It forms part of the auditors working papers and records a crucial part of the audit evidence required to justify the audit opinion.
Advantages of Audit Programme
1. Ensures all audit work to be done is performed and completed in time.
2. Enables the auditor to monitor the progress of work done in a given audit assignment.
3. Facilitates allocation of audit work to different audit staff on basis of their qualification and experience.
4. Is used as a control tool and a means of delegation of audit work to audit staff.
5. Acts as a record of work done and can be used in a court of law where the auditor may be sued for negligence.
6. Acts as a training tool for new audit staff.
7. Reduces the amount of supervision among audit staff.
Disadvantages of Audit Programme
1. There is no single program that may cover all areas of the company‘s operation.
2. May not be applicable in small entities with few procurement transactions.
3. Audit staff may do their work hurriedly as per the program and leave risk areas unchecked.
4. A given program can only be used in a specific organization and may be useless in another.
Purpose of Audit Programme
1. Serves as a set of instructions to the audit team.
2. Assists with planning and performance of audit.
3. Serves as a means of control.
